GBarena, an Egyptian e-sports platform, recently made the announcement that it had acquired Galactech, a gaming startup based in Tunisia.
The acquisition price is approximately $15 million and will be paid for through a stock swap.
A stock-for-stock exchange, or share swap, is a type of merger or acquisition in which the shares of the acquired firm are exchanged for shares of the target company at a predetermined swap ratio.
This indicates that GBarena is using some of its stock to purchase Galactech.
With 200,000 active users and $1.5 million raised over three rounds from OTF, OQAL angels, and the Tunisian Younis Family Office, Galactech was launched in 2016.
This acquisition is anticipated to aid GBarena in consolidating its position in Riyadh, Dubai, and Tunisia by using the already established business railroads of Galactech. In order to increase its presence in the area, Galactech will also be able to take advantage of GBarena’s established user base and resources, according to Houcem Maiza, co-CEO of GBarena and the former founder and CEO of Galactech.
Samer Wagdy and Mustafa Zaza founded GBarena in 2015 with the goal of bringing together all e-sport players in the MENA area and around the world. GBarena prides itself on being the first e-sport platform in the MENA region.
According to Wagdy, CEO of GBarena, “This acquisition is one step towards fulfilling the company’s objective, which is to be the premier aggregator in MENA, serving all players in the industry.”
Over 650,000 people utilize GBarena in 27 nations, including Saudi Arabia, Egypt, and the United Arab Emirates.
GBarena was reportedly valued at $45 million, but Galactech’s valuation remained undisclosed.
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